Manteca bucks trend again as taxable sales continue to gain

Manteca taxable sales grew 0.8 percent in the last four quarters.

That meant the city ended up with $62,059 more in sales tax receipts compared to the same time period in 2009-10 based on state Board of Equalization figures.

It may seem minuscule but compared to other jurisdictions within San Joaquin County – as well as practically everywhere else in California – it was downright herculean.

Consider what was going on with commerce in Manteca’s neighboring cities during that time: Tracy taxable sales down 10.1 percent, Lodi down 11.3 percent, Stockton down 12.8 percent, Escalon down 15.0 percent, Lathrop down 20.5 per cent, and Escalon down 30.0 percent.

California’s taxable sales were off 11.0 percent.

Manteca ended the four quarters with $7,723,216 in sales tax.

“We’re still humming along,” City Manager Steve Pinkerton said.

Manteca has been the county leader in municipal sales tax performance for the past five quarters. The only other jurisdiction the Northern San Joaquin Valley that has had major growth in sales tax in any of those quarters was Riverbank.

Pinkerton noted the numbers included year-to-year numbers for Bass Pro Shops and Costco, two entities that account for roughly 5 percent of all of Manteca’s sales tax receipts.

The gain, though, is tempered by the fact sales tax sharing agreements to land Bass Pro and Costco for Manteca have to be paid. But even so Manteca’s municipal sales tax gains would be 5 percent better than the nearest jurisdiction which was Tracy that suffered a 10.1 percent drop in sales tax. Without Bass Pro Shops and Costco, Manteca also would have had a sales tax drop between 10 and 11 percent or roughly $770,000 in lost revenue in real number by about $385,000 once sales tax deals are squared. That means those two deals saved the equivalent of the full year’s pay of three police officers for an entire year.

As an added bonus, the two stores by simply being in Manteca swelled Measure M tax receipts by close to $400,000 to protect against any additional erosion of supplemental public safety spending generated by the half cent sales tax.

Pinkerton noted Manteca retailers benefit from additional consumer spending powered by the fact the city grew by 1,000 residents thanks to 304 new home sales in 2009. At the same time Tracy added a half dozen new homes and Stockton 120 new homes.

By Dennis Wyatt
Managing Editor
dwyatt@mantecabulletin.com

Home sales top $546M in 29 months

Manteca homebuyers in the past 29 months have spent $546,413,000 snapping up housing deals in the resale market.

If the pace continues to year’s end, Manteca exiting home transactions will hit $611,620,000 during the three years encompassing 2008, 2009, and 2010. That will almost match the aggregate dollar values of existing homes sold within the city limits in the previous three years of 2005, 2006, and 2007.

“There is still very strong demand from buyers out there,” Realtor Tom Wilson said. “The market is undervalued and the multiple offers out there support that.”

Wilson, along with a number of other real estate agents contacted by the Bulletin, had a concern that the end of the federal tax credit of $8,000 for first-time buyers would slow down buying activity in the resale market. It hasn’t.

Wilson attributed that to the fact the market is undervalued and that most buyers understand that.

“You keep reading newspaper stories that say the real estate market is in the tank but it is a great market if you’re a buyer,” Wilson noted.

The amount of money being spent collectively just in Manteca proves Wilson’s point.

Despite a weakened economy and unemployment just under 16 percent, existing Manteca home sales are still attracting the same amount of money that they did during the last three years of the real estate bubble. The big difference, of course, is the price paid per home.

Realtors noted all cash buyers were rare until just three years ago. That means more people are putting their own money into homes while at the same time first-time home buyers who qualify for FHA loans are pushing hard to buy given the affordable market.

Wilson pointed out obtaining a loan is harder than when he started in the business more than 20 years ago. Even so, it isn’t stopping first-time buyers.

Wilson is working with a couple that missed out on the federal tax credit and would like to secure a piece of the $10,000 state tax credit before it expires but they don’t actually need it to make their deal work.

“It would be nice for them to get but it isn’t essential,” Wilson said.

As of June 1, existing Manteca homes that closed escrow numbered 473 for the year. At that pace the total sold by year’s end should hit 1,142 homes. That would make it the third best year ever behind 2009 at 1,211 homes and slightly behind 2008 at 1,165 homes. The fourth highest year for existing resales was in 2002 with 803 homes selling.

Another encouraging sign is the median selling price of those 472 closed deals. It is at $187,460 or where it was at in early April of 2009. The median selling price for 2009 in Manteca was $178,000.

If the trend holds it will mark the first year the median price paid for homes in Manteca has increased since it peaked at $413,000 in 2006.

By Dennis Wyatt
Managing Editor
dwyatt@mantecabulletin.com